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business • revIew august 1967 FEDERAL RESERVE BANK Of DAL IL AS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) contents contrasts - the economy through midyear ....... . . .. .... . . . .... . ... . 3 district highlights . . . . . . . . . . . . . . . . . . . . . . . . . .. 13 eontrasts-the economy through midyea,The first half of 1967 was a period of adjustment for the Nation's economy and marked a pause following the rapid expansion of 196566. Slower growth or declines occurred in Spending, production, and employment; but the levels of these measures of overall activity remained at or near the record highs reached earlier. Efforts by businesses to reduce inventories from the undesirably high levels attained in late 1966 represented a major factor in the first-half slowdown. In many respects, slowing of the economic advance this year was a desirable change from the overexpansionary and inflationary situation of 1965-66, when excessive spending, pressures on resources, and price increases were bearing down upon the economy and threatening its future viability. As might be eXpected, however, the pause in economic expansion created uncertainty and less favorable eXpectations among consumer, business, and other spending units, especially in the early months of the year. Although consumers and bUsinesses slowed the pace of their spending, Outlays by government continued large and on a .. nstng trend . Federal spending for defense and ~ther purposes provided even greater stimulalOn than in the last half of 1966, and purchases of goods and services by state and local ~vernments showed a further large increase. nder the stimulus of easier monetary policy, ~apid monetary expansion occurred during the rst half of the year. . At mid-1967, sluggishness in private spendLng and in total output continued, but levels of Production and employment remained high. A ~unlber of factors suggest the existence of more Uoyant expectations and the possibility of re- newed expansion in spending later in the year. Adjustment in business inventories - namely, a slowing in the rate of accumulation - had proceeded rapidly by midyear and may have approached the point where it will cease to be a dampening influence on spending and production. Moreover, as individuals moderated the pace of their spending in the fourth quarter of 1966 and in early 1967, they also added heavily to their savings and liquid asset holdings, thus providing a solid base for possible future increases in spending. Fiscal policy and monetary policy were highly stimulative during the first half of 1967; and in view of the generally accepted proposition that such stimuli influence spending only after a lag, the major impact of these policy measures may well be in the offing. Total spending measured in current dollars - that is, gross national product, or the value of all goods and services produced - increased at an annual rate of 3.5 percent from the fourth quarter of 1966 to the second quarter of 1967, or less than one-half the average rate of gain during the previous 2 years. Increases of $4.2 billion in the first quarter and $9.0 billion in the second quarter raised GNP to the record seasonally adjusted annual rate of $775.3 billion during the April-June period. Most of the advance in spending during the first 6 months, however, was reflected in price increases, with the result that output and sales expressed in physical terms ("real" GNP) gained only 1.1 percent. This slower rate of expansion in real GNP compares with annual advances averaging about 6 percent in 1965 and 1966. Actually, real GNP showed a slight decline in the first quarter of 1967 from the business review/ august 1967 3 record level of the fourth quarter of 1966, the first time in about 6 years this measure had failed to increase, but the decline was more than offset by the second-quarter expansion. The sharply reduced pace at which businesses added to their inventories during the first 6 months of this year was the principal factor dampening growth in GNP. Under the stimulus of general economic expansion - featuring expanding sales, high and rising rates of utilization of physical capacity, price inflation, and tighter monetary conditions - business inventories had advanced rapidly in 1965 and 1966. By the fourth quarter of 1966, business inventory accumulation reached a seasonally adjusted annual rate of $18.5 billion, a rate of gain that was undesirably high in relation to current and projected sales. The weight of inventory accumulation was especially marked among manufacturers, particularly producers of durable goods. Slowing sales of consumer durables - including automobiles, kitchen white goods, and radio and television sets - were a major factor in the enPRODUCTION AND INVENTORIES (So.,onallyadJ"slod) 154 NES INVE TOR S 1965 1966 p.. Prellntlnary. SOURCES; Board of GO\fornors. Fodoral Reserve Systom. U.S. Department of Commerce. 1967 larged stocks of manufacturers. Goods ordered for defense purposes and consisting mainly of items in the process of production also contributed importantly to the growth of manufacturers' inventories (but not, of course, to the problem of inventory adjustment). During J anuary-J une, both factory output and neW orders received by manufacturers declined. The manufacturers' inventory-shipments ratio rose to a high of 1.83 in April, as compared with 1.62 in April 1966; moreover, the average ratio for the first 6 months was well above that for any comparable period since 1961. Because of slowing sales and the earlier rapid rate of inventory accumulation, businesseS made sharp downward adjustments in the rate at which they added to stocks in the first half of 1967. The seasonally adjusted annual rate of accumulation declined from $18.5 billion in the last 3 months of 1966 to $7.1 billion in the first quarter and $2.1 billion in the second quarter of the current year. As might be expected, industrial production responded quickly to the easing of sales and the large inventory buildup. Production declined at an annual rate of 4.8 percent fron1 December 1966 (when the index of industrial production was at the peak level of 159.0 percent of the 1957-59 base) to June 1967; hoWever, industrial output in June was still onlY slightly below the relatively high level which prevailed a year earlier. The decline in induStrial production this year contrasts sharply with the 5-percent rate of advance from 1960 to 1964 and the accelerated 9-percent rate that held from 1964 to 1966. The easing of production has been reflected principally in the decreased output of durables, especially iron and steel, fabricated metal products, electrical machinery, and such consumer durables as automobiles, furniture, and television sets. Growth in business fixed investment was halted in the first half of 1967, and the reduCtion contributed to the slowing in total output PLANT AND EQUIPMENT OUTLAYS P· PrClllmlnary. SOURCES: Sec uriti es and Ex chan ge Comm iss ion. U.S . Dop arlrn ent of Commerco. and spending. Business investment had ex~anded 16.4 percent in 1965 and 12.8 percent lU 1966. In the first 6 months of 1967, however, such spending declined at the annual rate of 3.6 percent from the level of the fourth qUarter of last year. remained relatively stable from mid-1966 to mid-1967. In June of this year, the estimated level of outlays was about the same as in 1965 but was well above the average of the early sixties. During the first half of 1967, the rate of spending for private nonfarm residential construction rose moderately, but expenditures for commercial and industrial properties weakened. New construction spending by Federal, state, and local governments held at about the level of the previous 6 months. New private housing starts, which had fallen sharply from December 1965 to October 1966, rose noticeably late last year and continued to show moderate, although encouraging, strength during the first half of 1967. At 1.3 million units in June, starts reached the highest level recorded so far this year but remained well below the average for other recent years prior to 1966. The decline in mortgage rates in early 1967 and the expanded inflow of mortgage funds to savings and loan associations and other mortgage lending institutions were important factors leading to improvement in the residential building situation. . Although businesses spent large and increasIng amounts for plant and equipment during the 1963-66 period - including outlays for both modernization and expansion of facilities - capacity utilization rates advanced under the stimulus of rising demand and output. From the first to the third quarters of 1966, the rate of utilization of manufacturing capacity held at a peak of 91 percent before declining to about 85 percent as production was cut back in 1967. With operating rates declining late last year and early this year, businesses made downward rev' . IS10ns in current and future spending plans. Nevertheless, business confidence has remained strong, and recent restoration of the investment tax credit and of accelerated depreciation represents an additional incentive for businesses to Proceed with investment plans for new plant and equipment. Rising government expenditures for goods and services provided strong support to the economy during the January-June period and represented a major factor in the moderate growth of total' spending. The margin of increase in government purchases, equivalent to a seasonally adjusted annual rate of increase (GNP basis) of 16.7 percent, was slightly greater than the overall dollar expansion of gross national product. Total Federal Government spending for goods and services and outlays for national defense advanced at annual rates of 19.6 percent and 21.3 percent, respectively, while purchases by state and local governments increased at the rate of 13.5 percent. The rate of new construction expenditures, wI' s ~ch rose sharply from late 1964 to the PrlUg of last year and then declined markedly, The growth in national defense expenditures during the first 6 months of 1967 represented a continuation of the sharp advances in the business review/august 1967 5 RETAIL SALES annual rates of spending last year - 22.9 percent in the first half of 1966 and 24.7 percent in the second half - and stemmed mainly from the U.S. commitment in Viet-Nam. By spring this year, troop strength in Viet-Nam totaled 460,000, and the increase in defense goods in the process of production was being reflected in the unusually high inventories of manufacturers. In the fiscal year ended June 30, total defense spending was up an estimated $1.3 billion in comparison with the level of outlays projected in the President's budget in January. The slowing of economic expansion which began late last year had a relatively mild impact upon personal income and employment. Personal income continued to advance to new highs during each month of the first half of 1967 and, for the period, grew at a rate of 5.8 percent, compared with 8.6 percent during 1966. Although consumers had begun to slow the pace of their outlays in 1966, especially purchases of durables, personal consumption outlays in the first 6 months of the current year expanded at a faster rate than personal income, partly due to the reduced rate of personal tax payments. Thus, the increase in disWHOLESALE AND CONSUMER PRICES 1966 p~Prellmln8ry. SOURCE: U.S. Dopartment 0' 1967 Comm.reo. posable personal income - at a 7.0-percen t rate over the 6 months - compared favorably with that for the first half of 1966 and the rate of personal savings held near the' advanced level reached late last year. Despite the decline in industrial output and the slowdown in other areas of the economy, employment remained relatively stable and at a high level during the first half of 1967. payroll employment in June was up slightly compared with January, with continuing emploYment gains in government and services about offsetting decreases in manufacturing and construction. Even though employment was maintained at a high and stable level, amounts of overtime work and pay were reduced. Due mainly to the large influx of workers in June, the civilian labor force expanded slightly during the 6 months. In June the unemployment rate rose to 4.0 percent from the average rate of 3.7 percent that had prevailed during the first 5 months of the year. The May-June rise stemmed mostly from unemployment among adult women seeking seasonal work. Although the overexpansionary and inflationary pressures of 1965-66 had begun to 6 subside by early 1967, most prices continued to rise during the first half of the year. Successive monthly increases in consumer prices after January raised the index in June to the record level of 116.0 percent of the 1957-59 base - reflecting a rate of expansion of 2.7 percent, as compared with 4.1 percent during January-June last year. As in other recent years, prices of services continued to advance sharply; however, prices of food declined. Wholesale prices declined from January to April, mainly in response to a sharp drop in some agricultural prices and a slowing in the rate of increase in industrial commodity prices. In May and June, the total wholesale index recovered to the January level, as prices of farm products rose sharply while industrial commodity prices were stable. financial developments Major domestic financial developments during the first half of 1967 included a stimulative monetary policy, substantial changes in interest rate levels, rapid increases in bank credit and the money supply, and extraordinarily heavy public offerings of new securities on the part of corporate businesses and state and local governments. In the international area, the U.S. balance of payments continued to deteriorate, despite an improvement in the balance of trade. The Federal Reserve System moved aggressively during the first 6 months of 1967 to achieve an expansionary posture in monetary policy. Easing actions were taken because of t~e reduced rate of growth of the economy and With a view to inhibiting the development of a CUmulative decline in overall economic activity. Federal Reserve holdings of U.S. Government securities increased rapidly; reserve requirements on some time deposits were reduced in March; and the discount rates of the Reserve banks were lowered in April. Mainly as a result of these actions, the reserve position of member banks improved sharply. This improvement was reflected in the decline in mem- ber bank borrowings at the Reserve bankswith borrowings averaging $557 million in December 1966 but $112 million in June 1967 - and in the rapid shift from average net borrowed reserves of $165 million in December 1966 to net free reserves of $236 million in March 1967 and $257 million in June 1967. The System, through open market operations, pursued an aggressive policy of adding to its holdings of Government securities. Average holdings increased in each month and were $1. 9 billion higher in June 1967 than in December 1966. This sharp expansion is more than twice the increase that occurred during the comparable period a year ago, when monetary policy was moving in the direction of restraint. As another step to increase the supply of funds available to the banking system, the Board of Governors on February 28, 1967, had announced a reduction in reserve requirements - from 4 percent to 3 percent - on savings deposits and on other time deposits up to $5 RESERVE POSITION OF MEMBER BANKS p· Prollmlnary. SOURCE: Board of Go~ornors. Fed(lrll Reservo S) 5tem. business review/august 1967 7 million. It is estimated that this reduction in reserve requirements made available $850 million in reserves, $350 million at reserve city banks and $500 million at country banks. Early in April, the Board of Governors announced approval of the actions of the directors of each of the Federal Reserve banks in lowering the discount rate from 41;2 percent to 4 percent. These reductions followed declines in open market rates and in the discount rates of central banks in some other major countries. At the time of the reduction in the discount rate, both the yield on 3-month Treasury bills and the Federal funds rate had retreated from 1 percentage point or more above the discount rate to levels somewhat below the discount rate. In the case of the other major central banks, discount rate reductions had been announced in Canada, Germany, and the United Kingdom. Interest rates in both money and capital markets decreased in early 1967. Although the downward adjustment in rates was occasioned by the easing of credit demands associated with slowing in the pace of economic advance and the development of less ebullient expectations, SHORT·TERM RATES PERCENT EFFECTIVE RATE ON FEDERAL 1965 SOUR CE: Boa rd 8 1966 0' Gove rnors, Fodora l Rose rve S~ sto m . 1967 LONG·TERM RATES 1966 1967 SOURCE : Boa rd of Govern ors. Foderal Res er ve Sy stom. official monetary actions designed to increase the supply and flow of funds provided the major impetus for the decrease. In money markets, the rate declines were markedly deeper and more persistent than those which occurred in capital markets. Short-term rates continued to fall until May, while long-term market rateS had reached lows for the period in February· Following these declines, however, rates moved upward, with market yields on longerterm instruments rising quite sharply and reaching a point toward the end of June which was within the range of the 1966 highs. The cessation of the declines and the subsequent upturn in both money and capital market rateS reflected a number of factors, including heavY demands for funds by corporations and state and local governments, anticipations of a resurgence in the economy in the second half of 1967 (including firming of monetary poliCY and interest rates), and expectations of large Treasury borrowings during the remainder of the year. The greater decline in money market rates than in capital market rates created a large gap between short- and long-term rates and shifted the shape of the yield curve. At the end of 1966, the yield curve was downward sloping, indicating a market expectation of lower rates, but by April the curve was upward sloping, indicating a market expectation of higher interest rates. In the money market, the average yield on 3-month Treasury bills moved from 4.96 percent in December 1966 to 3.54 percent in June, declining 142 basis points. During the latter part of June, however, the market rate on such bills rose and, by early July, reached a level of 4.29 percent. Other money market rates also fell substantially from December through May. In terms of basis points, the declines were as fOllows: Commercial paper ............ 133 Finance company paper ....... 147 Bankers' acceptances .......... 133 The yields on these money market instruments adjusted upward subsequently. In capital markets, rates moved downward ?nly moderately and ceased their downtrend In February. Dec. Issue U.S. Government bonds (long-term) Aaa state and local government bonds Aaa corporate bonds Feb. 1966 1967 4.65 4.47 3.79 5.39 3.38 5.03 These rates then adjusted upward quite substantially. During the last week in June, longterm U.S. Government issues showed an average yield of 4.95 percent; state and local gov~rnment issues, 3.85 percent; and corporate ISSues, 5.56 percent. credit occurred in loans (particularly commercial and industrial loans), the growth in the first half of 1967 was centered in the securities portfolios, especially in holdings of non-U.S. Government securities. Of the $16.5 billion advance in total bank credit (on a seasonally adjusted basis) between December 1966 and June 1967, only $7.1 billion, or 43 percent, occurred in loans. In the first 6 months of 1967, while holdings of U.S. Government securities rose only by a seasonally adjusted $2.2 billion, holdings of non-Governments increased $7.2 billion, thereby facilitating the continuation of heavy bond sales on the part of state and local governments. It may be noted, also, that there apparently were substantial changes in the growth of total credit at the different categories of banks in the first half of 1967. Loans at the larger banks expanded very little in the first half, while loans at the smaller banks grew quite rapidlymore rapidly, in fact, than in the first half of 1966. This differential in loan growth may be the result of the use made of the market for debt instruments by larger borrowers, who usually deal with the larger banks, and the unavailability of alternative sources of credit to the smaller borrowers, who strongly affect loan demand at the smaller banks. The loan-deposit ratio at the Nation's commercial banks declined from 65.8 percent in December 1966 to 65.1 percent in May 1967 but then rose to 66.0 percent in June. The decline from December through May was the result of both the relatively modest increase in loans and the rapid growth of deposits. In the first half of 1966, the loan-deposit ratio rose from 63.7 percent to 66.0 percent. Bank credit increased rapidly in the first half ~: 1967, due mainly to the sharp expansion in . e reserve base. Total bank credit at the NatlOn' ad' s commercial banks rose at a seasonally b lUsted annual rate of 10.6 percent in the t ecember 1966-June 1967 period. In contrast o 1966, when most of the growth in bank While much of the reduction in the rate of growth of loans at the commercial banks was accounted for by business loans, each of the other major categories of loans showed less strength than in the same period last year. Business loans expanded a seasonally adjusted $4.5 business review/ august 1967 9 billion in the first 6 months of 1967; in the comparable 1966 period, these loans rose $7.0 billion. Both consumer loans and real estate loans also increased less rapidly in the first half of 1967 than in the first half of 1966. COMMERCIAL BANK LOANS AND INVESTMENTS (Ai of last Wedne sday of month ) cent, respectively, in the first 6 months of the current year. Time deposits adjusted (which exclude deposits due to domestic commercial banks and the U.S. Government) expanded at a seasonally adjusted annual rate of 17 percent between December 1966 and June 1967. Much of this increase reflects the success of banks in attracting funds through offerings of time certificates of deposit. With the sharp decline in market rates on competing instruments, bank offering rates on CD's became increasingly attractive to both corporate and other investors. After declining to a level of $15.4 billion during December 1966, the volume of large certificates of deposit outstanding at weekly reporting commercial banks expanded to $19.3 billion during June 1967. Inflows of funds at the Nation's savings and loan associations and mutual savings banks were quite large in the first half of 1967. Net savings inflows were an estimated $8.6 billion, in striking contrast to the $2.9 billion increase in the comparable 1966 period. ' The infloW during the first 6 months of 1967 represents a record growth for the period: 1965 1967 p· PrcliRlin a ry. SOURCE : Bo a rd of Gov ernor s, Fodoral Ro , orvo $yuom . Both the money supply and time and savings deposits grew quite rapidly in the first half of 1967. It is estimated that, from December 1966 through June 1967, the money supply increased at a seasonally adjusted annual rate of 7 percent. This growth is in sharp contrast to the 3.4-percent annual rate of rise in the period from June 1960 to June 1966. The two components of the money supply, demand deposits and currency and coin, expanded at seasonally adjusted annual rates of 7 percent and 6 per- 10 Both corporate businesses and state and local governments made heavy demands upon the capital market in the first half of 1967. The particularly heavy corporate demands for funds may be attributed to the continued high level of capital expenditures, the relatively low levels of corporate liquidity, the desire to payoff some short-term bank loans, and the anticipation of more stringent monetary conditions in the second half of the year. Similarly, longterm security issues of state and local governments were an estimated 23 percent higher ill the first half of 1967 than in the first half of 1966. While some had expected that the large demand for funds would taper off after the first quarter, the demand, in fact, continued thrOUg~ the second quarter, with a record volume 0 new corporate offerings in June. Total corporate security offerings in the first half of 1967 were an estimated $11.7 billion, Or about 15 percent more than in the first half of 1966. Of the $11.7 billion of new issues, $10.8 billion was bonds and $0.9 billion was stocks. Manufacturing businesses borrowed about 45 percent of the new capital raised, While public utilities and communications firms accounted for 19 percent and 9 percent, respectively. Of substantial importance in corporate bond financing in the first half of 1967 Was the switch in emphasis from private to public placement. As a result, public new issues Were $7.2 billion, or almost double the amount in the previous year. The volume of Treasury cash borrowing during the first half of 1967 was only slightly less than that in the comparable period of last year. A total of $3.9 billion in new funds was raised by the Treasury during the J anuaryJune period, consisting of a $1.2 billion addition to regular bill offerings and a $2.7 billion Offering of Tax Anticipation bills. In the first half of last year, Treasury cash borrowing totaled $4.0 billion. On June 29, the Treasury MONEY SUPPLY AND TIME DEPOSITS NEW DEBT ISSUES .-Estlmated. SOURCES ; Bo ard of Govornor s. Fed oral Re servo System. Fodor. 1 Resorvo Bank of Dill as. announced plans for selling $6.2 billion of Tax Anticipation bills and other short-term securities to raise some of the new funds needed during fiscal 1968. In addition to its cash borrowing operations in the first half of 1967, the Treasury refunded $11.2 billion of notes and bonds and prerefunded $1.4 billion of certificates and notes. balance of payments Measured on either the liquidity basis or the official reserve transactions basis, the Nation's balance of payments remained large in the first quarter of 1967. While exports grew more rapidly than imports (and, consequently, the merchandise trade surplus rose to about $4.0 billion, as compared with $2.9 billion in the previous quarter), this gain was more than offset by an increase in U.S. Government expenditures abroad and the decline in loan repayments by foreign countries. P"Pre1Imlnary. SOURCE : Board ot OO\lUrnOr l, Foderal Ro scrve Systom . Measured on the liquidity basis - that is, by changes in U.S. official reserve assets and in U.S. liquid liabilities to all foreign residents - the deficit was at a seasonally adjusted an- business review/august 1967 11 u.s. BALANCE OF PAYMENTS I)· Proll mln nry. SOUR CE : U,$. Dep ar tm en t o f Comm erco . nual rate of $2.2 billion in the first quarter. On this basis, the deficit was somewhat larger than the $1.4 billion recorded for the year 1966 and the $1.7 billion deficit in the fourth qu arter of 1966 but was less than the $2.6 billion deficit in the first quarter of 1966. Measured on the official reserve transactions basis - that is, by changes in U.S. official reserve assets and in liquid and nonliquid liabilities to 12 foreign official agencies only - the deficit increased sharply. However, the extraordinarilY large official reserve transactions deficit reflected the transfer of funds from foreign private accounts to foreign official accounts, a shift which reversed the movement in 1966. Merchandise exports from the United States (excluding military items) rose from a seasonally adjusted annual rate of $29.6 billion in the fourth quarter of 1966 to $30.8 billion in the first quarter of 1967. In the same period, merchandise imports (excluding military items) remained almost unchanged, increasing only from $26.7 billion to $26.8 billion. As a result, the export surplus on merchandise trade rose about $1 .1 billion between the fourth quarter of 1966 and the first quarter of 1967. During the first quarter of 1967, U.S. official reserve holdings declined slightly over $1 billion. This decline was heavily centered in the holdings of foreign currencies. However, most of the reduction was offset by a $700 million fall in liquid liabilities to foreign private residents. In addition, the U.S. gold tranche position in the International Monetary Fund decreased $20 million, which is substantially below other recent declines. district highlights In response to the Mideast crisis that resulted in a curtailment of crude oil shipments to many Western nations, production of crude oil in the SOuthwest increased in June, and a further advance during July is certain. Daily average Crude oil production in the Eleventh District rose 1.2 percent during June and was 2 percent ahead of the same month last year. Among producing areas in the District, east Texas showed the largest monthly gain of 3.6 percent, and west Texas was not far behind; production in other areas in the District changed by lesser amOunts. Between January and May of this year, regulatory authorities had lowered the Texas allowable steadily as a result of a slackening demand for crude oil and the consequent rise in petroleum inventories. When the war in the Middle East erupted, the demand for American crude oU rose, and the large inventories in the United States and Europe became an asset. The allowable for July, permitting production at nearly the highest level in Texas since the 1957 Suez crisis, was set at 48 percent of permissible prodUCtion, or one-third higher than the June figUre; the allowable for August has been placed at 54 percent. Louisiana has also raised its Ulonthly allowables significantly. Production in the Southwest will probably be maintained at reCord levels during August. The expansion in OUtput is not likely to be proportional to the adVance in allowables, since many older wells may not be able to increase their output significantly. Partially as a result of a threatened crude oil shortage, two major producers and ~wo. smaller ones raised crude oil prices slightly Urmg mid-July. Total nonagricultural employment in the five SOUthwestern states moved ahead to a level of 5,697,500 persons in June by increasing 0.8 percent, which is more than double the expected seasonal gain. The increases in both manufacturing and nonmanufacturing employment were above seasonal anticipations. Employment performed better than seasonally expected in all nonmanufacturing categories except mining and construction; employment in services was quite strong. Nonagricultural employment in the five states in June was slightly more than 4 percent over the same month last year. The year-to-year gain in manufacturing employment was under the average for all employment, while the rise in nonmanufacturing employment was just in excess of the average. Nonmanufacturing employment was boosted above a year ago by especially strong gains in service and government employment. The other increases clustered about the average gain for nonmanufacturing employment, but bOtll mining and construction employment fell below a year earlier. In June the Texas industrial production index, seasonally adjusted, rose fractionally to 154.3 percent of its 1957-59 base. The monthto-month change for both durable goods manufactures and nondurable goods manufactures was not appreciable. Durable goods production edged upward, but the output of nondurable goods slipped slightly. Among the durable goods, electrical machinery registered the most prominent output advance of nearly 5 percent. Primary metal industries, with production down nearly 3 percent from May, had the greatest decline. Otherwise, the gains and losses within the durable goods sector were moderate and about evenly split. In the nondurable goods sector, textile mill products showed the largest production gain of almost 3 percent. There business review/ august 1967 13 were more declines than gains within the sector; month-to-month losses approaching 3 percent occurred in three of the nondurable goods industries. cent greater than in the comparable period last year. Cumulative sales thus far in 1967 were 3 percent larger than in the like period in 1966. Mining output was up slightly more than 1 percent over May, with the advance accounted for by increases in the production of metal, stone, and earth minerals and of crude petroleum. There was virtually no change from the prior month for the utilities category. Both loans adjusted and investments and total deposits increased at the weekly reporting commercial banks in the Eleventh District in the first 6 months of 1967. The increase in loans adjusted and total investments was heaVily influenced by the rapid growth in holdings of non-U.S. Government securities at these banks, while the increase in total deposits reflected the extremely rapid rate of gain of time deposits. The industrial production index for the State in June was 4.5 percent ahead of the same month last year; the output of durable goods displayed a slightly greater than average increase, and nondurable goods production, a slightly less than average gain. Transportation equipment production showed the greatest increase in the durable goods sector - 15 percent. Output of stone, clay, and glass products, dipping nearly 8 percent, showed the largest decline. Other changes were more moderate, with the gains and losses among the remaining durables about equally divided. Within the nondurable goods sector, the changes tended to center around the average change for all nondurable manufacturing. The year-to-year gain in mining was about 3 percent, and the major strength in this sector came from the 7-percent increase in natural gas. The output of utilities advanced strongly over a year earlier, buoyed particularly by a 14-percent gain in the production of electricity. Registrations of new passenger automobiles in four major Texas areas rose again in June and established a new high for the month. Combined registrations, totaling 19,710 in the four markets (Dallas, Fort Worth, Houston, and San Antonio), were up 2 percent over May and 3 percent above June 1966. However, cumulative registrations for the first half of the year were 3 percent below those in 1966. Department store sales in the Eleventh District in the 4 weeks ended July 22 were 4 per- 14 Loans adjusted rose $83 million in the first half of this year, of which $33 million represented an increase in commercial and industrial loans. In the first half of 1966, commercial and industrial loans had expanded $73 million. Total investments at the District's weekly reporting commercial banks rose $93 million in the first 6 months of 1967, reflecting a $107 million gain in holdings of non-U.S. Government securities but a $14 million decline in Government securities. The increase of $53 million in total deposits was accounted for entirely by the rise of $182 million in time and savings deposits, inasmucn as total demand deposits fell $129 million. Tb e growth in time and savings deposits, in turn, reflected a gain of $139 million in negotiable time certificates of deposit issued in denonl inations of $100,000 or more and a gain of $13 3 million in other time deposits (excluding the large CD's); savings deposits declined $53 million. In the first half of 1966, large CD's issued by these weekly reporting banks had expanded $102 million. Rains and showers have fallen over widely scattered areas of the Eleventh District, and soil moisture ranges from extremely short to adequate. In areas where precipitation has not been received, plants are under' stress, and early harvesting has been prevalent. U.S. Department of Agriculture estimates of winter Wheat production in the five southwestern states, as of July 1, place output at 13 percent below the 1966 harvest. Rice production, on the other hand, is indicated to be 7 percent higher than last year. Harvesting of earlier than ~sual crops of cotton, sorghum grain, and rice IS making good progress. Livestock in the District are in fair to good ~ondition, but increased supplemental feeding IS required in moisture-deficient areas. An un- usually varied pattern of grazing conditions exists because of divergent weather. Poor grazing and a shortage of stock water in some areas have encouraged heavy culling of herds and early marketings of young stock. Prices received by Texas farmers and ranchers for all farm products during the first half of 1967 were 10 percent lower than in the same period a year earlier. Cash receipts from farm marketings in the five District states during January-May were 14 percent below the corresponding period last year. The Chelmont State Bank, El Paso, Texas, located in the territory served by the EI Paso Branch of the Federal Reserve Bank of Dallas, became a member of the Federal Reserve System on Ju ly 24, 1967. The new member bank, which was organized in 1960, has capital of $646,800, surplus of $646,800, undivided profits of $398,800, and total resources of $17,682,500. The officers are: H. D. Fulwiler, Chairman of the Board; A. C. Donell, President and Trust Officer; G. G . Dalby, Senior Vice President and Assistant Trust Officer; Earl L. Chambers, Vice President and Cashier; Stewart M. Pinkerton, Jr., Assistant Vice President and Assistant Cashier; C. E. Stras, Comptroller; Mrs. Hollis Brown, Assistant Cashier;' and Pete Jurado, Assistant Cashier. business review/ august 1967 15 STATISTICAl! SUP.P.I!EMENli to the BUSINESS REVIEW August 1967 FEDERAL RESERVE BANK OF DALLAS RESERVE POSIT IONS OF MEMBER BANKS CONDITION STATISTICS OF WEEKLY REPORTING COMMERCIAL BANKS Eleventh Federal Reserve District Eleventh Federal Reserve District (Avorag e, of daily flgures. In thousands of dollars) -= (In thousonds of dollars) Ite m Jul y 26, 1967 June 28, 1967 July 27, 1966 ASSETS Net loan s and discounts .... ..... .. ... .. ...... . Valuation reserves ........................... Gross loans and di scounts ............. .. •..... 5,125,639 95,736 5,221,375 5,254,942 95,520 5,350,462 4,963,699 92,143 5,055,842 Commercial and industrial loans•.......•..... 2,494,310 2,555,112 2,454,636r 103,493 102,359 84,339 18,761 42,189 7,753 45,737 4 42,152 871 320,625 814 324,447 1,131 319,043 172,036 278,776 492,171 156,395 4,153 530,199 186,525 284,659 491,439 240,317 4,171 527,330 160,974 258,894 467,775 128,566r 7,145 519,438r Other loans ••.. •••.•.••••••.•. .••.•... ••• 0 607,396 0 579,799 99 611,646r Total investments •.. •. • . •.... .....•. . . . .•.... 2,397,411 2,317,258 2,251,830r Total U.S. Governm ent securities ..... ......... Treasury bill s.. . ..................•..... Treasury certiflcates of indebtedness •.. ..... Treasury notes and U.S. Government bond s maturing : 1,104,780 69,192 13,872 1,076,207 42,346 15,167 1,140,748 39,372 5,824 Agricultural loan s, excl uding CCC certiflcates of interest ••••...•....••••..•. loans to brokers and dealers for purchasing or carrying: U.S. Government securities ................ Oth er securities ......................... Other loans for purchasing or carrying : U.S. Government securities ... ....... .. .... Other se curiti es ...................... . .. Loan s to nonbonk Anantial institution s: Sales finance, personal flnance, factors, and other business credit companies •••.... Other •••••. . .••••....••.• ..•..••••••.. Real estate loons .•........................ Loons to domestic commercial banks•.••....... Loon s to foreign bonks ••. ... .. ...... ... . . , . Consumer instalment loons •••...... ...... .... Loans to foreign governments, offlcial institutions, central bonks, international institutions ..............•... . ..... ...... 140,702 625,560 255,454 116,550 644,798 257,346 125,372 584,311 385,869 27,778 1,035,075 16,046 1,029,839 13,907 941, 168 Oth er a ssets ••. . .•... ...... • ......... ...... . 146,019 83,759 829,367 678,224 79,132 472,840 4,952 316,239 131,361 63,805 850,458 612,044 77,889 436,110 4,779 322,667 82,375 73,632r 771,423 556,520 78,187 443,529 4,979 312,785r TOT AL ASSETS . . •. .•... ••••••. . .• •••• •• 9,903,804 9,876,147 9,382,952 Total depo si ts ••••..•.•••••..•••.....•.•••.• 8,460,209 8,416,524 8,080, 143 Total demand deposits ••••••..•.•••...••••• 5,106,287 3,536,382 276,169 136,138 1,059,130 5,055,661 3,410,831 289,421 118,436 1,122,503 4,868,180 3,374,935 320,859 129,827 950,214 Within 1 year ••••••.••••••••••..•.••. 1 year to 5 years .........•........... After 5 years •• ••••.•. ••••• ••. •.•.••• • Obligations of states and political subdivisions: Ta x warrants and shorf·term note s and bill s .. All other • •• •.• .••. •..•••.•.• . • . •• · • ··•· Other bonds, corporat e stocks, and se curiti es: Participa tion certiflcotes in federal agency loons ..............•........ ·• All ather (including corporate stocks) . . •• ... • Cosh items in proc ess of coll ection .... ... .... .. . Reserve s with fed e ral Reserve Bonk . •.• . ........ Currency and coin ..• ....... •. .... . .... . ..... Balances with banks in the Unite d States ... ..• ... Balances with banks in foreign countries .....•.. . Item 4,43 1 23,346 86,693 3,360,863 2,630 20,564 69,151 3,211,963 U.S. Governm ent (including postal savings) ••• 8anks in the United States ••••.•.••..• •• .• • 1,114,147 1,646,665 555,703 12,929 22,978 1,134,251 1,602,409 591,637 10,955 20,111 1,209,316 1,425,484 551,486 5,902 17,235 foreign: Gov ernm ents, offlcial in stitutions, central banks, international institutions ....•..•. Comm ercial banks ........ . . .• .. . ...... 800 700 800 700 1,000 1,540 408,425 154,679 360,721 220,183 303,873 157,947 Bills pa yab le, rediscounts, and other liabilities for borrowed monoy . .... ....... .. . Other liabilities ••••••••••.••••.•••....•.•... 880,491 878,719 840,989 TOTAL LIA81L1TIES AND CAPITAL ACCOUNTS 9,903,80~ 9,876,147 9,382,952 2 Revised. 5 weeks ended July 6, 1966 642,204 595,825 46,379 638,464 3,740 0 3,740 636,101 590,200 45,901 631,521 4,580 14 4,566 606,521 563,126 43,395 600,887 5,634 23,100 - 17,466 632,219 475,775 156,444 595,182 37,037 3,828 33,209 625,930 471 ,500 154,430 592,958 32,972 4,054 28,918 612,723 468,622 144,101 584,867 27,856 10,728 17, 128 1,274,423 1,071,600 202,823 1,233,646 40,777 3,828 36,949 1,262,031 1,061,700 200,331 1,224,479 37,552 4,068 33,484 1,219,2 44 1,031,7 48 187,496 1,185,754 33,490 33,828 _338 Total reserves held ............ With federal Re ser ve Bank ... Currency and coin ........... Required reserves ............ . Excess reserves .••............ Borrowing s................... free reserves .... . ............ COUNTRY BANKS Total reserves held .......... . . With Fe deral Reserve Bonk .... Currency and coin ......... .. Re quired reserves . • ... . ..... .. Excess reserves ... . •........• . Borrowing s.................. . Free reserves ................. ALL MEMBER BANKS Total reserves held . .. ...... . .. With Federal Re se rve Bank .... Currency and coin ........... Require d reserves ..•.......... Excess reserves . ... ..........• Borrowings .... ... .......... .• Free reserves ................. -- CO NDITI O N O F THE FEDERAL RESERVE BANK O F DALLAS (1n thousonds of dollors) ================================~ July 26, June 28, j uly 27, ______________I_te_m __________________1~9~6~ 7 ______~1~96=7_______1~~ Total gold certiflcate rese rves . • •... •. .. . .... Discounts for member bonks ..........•..... Other discounts and advances •...........•. U.S. Government se curitie s . • ...... . ........ Total e arning asse ts .••....... '" ......... . Member bonk reserve deposits.. • .. ..... .... f ederal Re se rve notes in actual circulation . . . .. 519,117 3,467 o 1,828,588 1,832,055 1,078,236 1,314,801 375,384 4,820 1,044 1,896,031 1,901,895 994,292 1,289,462 573,9~~ 43,8 0 3 1,527,9~1 1 ,571.~ 51 955, 5 1,24 4,5 2 -------------------------------------~ CO ND ITIO N STATIST IC S O F A LL MEMBER BAN KS (In millions of dollars) ~ Item June 28, 1967 May 31, 1967 ASSETS Loans and discounts. ...... . . ... ..... .. . . U.S. Government obligations .. ... •..... •. Other securities ....... .•.. .. . .... ...... Rese rves with Fe d eral Reserve Bonk . • ... • . . Ca sh in vault ... . ...... . .............. . Balences with banks in the United States •... Balanc es with banks in foreign countries e . .. . Ca sh items in proce ss of coll ection •.•... . .. Other assets e ............. .••.• ........ 9,096 2,237 2,42 1 994 229 1,063 7 963 50 1 TOT AL ASSETse •...•.. . ..... .••• •. • . 9,039 2,270 2,397 947 219 1,031 6 786 492 17, 187 LIABILITIES AND CAPITAL ACCOUNTS Demond depo sits of bonks .............. . CAPITAL ACCOUNTS •.•... • .••••• ••. .••...•. r - June 7, 1967 Eleventh Federal Reserve District 3,221 21,854 73,393 3,353,922 Total time and savings d eposits . •.....•. . .... Individuals, partn ers hips, and corporations: Savings depo sits ...............••.•... Other time d eposits . . . .. .. . ........•... States and political su bdivi sions ............ 5 weeks ended RESERVE CITY BANKS LIABILITIES Individuals, partn ers hips, and corporations.... State s and political subdivisi ons .......•.... U.S. Governm ent .. . ..... . ....•.......... Banks in the Unite d States . . ............... foreig n: Gover nm ents, offlciol institutions, central bonks, International institutions • .. ... ... Comm ercial banks ... .... ... •.... .. ... . Certifle d and offlce rs' checks, etc ........... - 4 weeks ended July 5, 1967 Other demand deposits • •• •.. . ...• •.••. •. Time deposits............ ..... .....•... Toto I d e posits •••. • •... ....•. •.. ... •. Borrowings ..•.. . ................. . .. . . Oth er liab ilities e .•.... . ...... ....... ... Total capital accounts e .. •... ..... ... ..•. TOTAL LIABILITIES AND CAPITAL ACCOUNTSe ... •. • •••••..•... . •.•. e- Estimated. 1,374 7,608 6,354 1,246 7,561 6,345 15,336 372 299 1,504 15,152 296 245 1,494 17,187 June 29, ~ 865 6 2'29 1 2'1 40 '902 216 986 6 872 357 ~ 1 212 7'53 8 5: 693 1;4:43 '3 A5 21 8 I ,A2 0 --JM11 ~ BANK DEBITS, END-OF-MONTH DEPOSITS, AND DEPOSIT TURNOVER (Dollar amounts in thousands, seasonally adjusted) DEB ITS TO DEM AND DEPOSIT ACCOUNTS' DEMA ND DEPOSITS' Percent chang e - 6 month s, (Annual - rote St a nd a rd metropolitan basis) statistical area Texarkana (Texas· Arkansas} .. . . .. .. ........... . Tyl.r .................... .. . ....... .. ....... Waco . . ... ... . . . .. . .... ... ... ..... . ...... .. Wichita Falls •• ••••••• ..••••. .• • •• , .•• •... •.. 4, 158,444 2,0 11 ,908 5,889,384 611,796 1,746,012 4,310,556 4,68 8,856 5,557,608 1,3 60,284 3.907,896 366.696 70,408,932 5.277.684 14,702.676 2.240.352 70.010,086 658,380 3,572.868 1,320,432 1,584,684 1,248,072 907.920 11 ,737,308 1,297,320 1,597,944 2.32 1.832 1,845,732 Tatal_27 c.nt.rs • .• •••• .. •• .•••...• •• . •.• .. ••• ...• • $225,34 1,662 ARIZONA, Tucson •••.•.•.... . .••.•. . .•.••.•..••••.•• LOUISIANA, Monro ....... ..... .... .. .............. . Shre veport .................... . . .. ..... . NEW MEX ICO , Roswell' ••. . •••• •...•.•... •.• . . . ••... TEXAS, Abil. n•.• . •...... •••... • ••...•• •. ..•.... •.. Amarillo . • . • . . ....•.•.• ...•••• ••.•.•. •. •••· • Austin .. . •.. .... .. . ..... . . ................ · . Beaumont- Port Arthur-Orang e • •.•. ... ...•.... . . Brownsville- Harling en-Son Benito .... .... . ....... Corpus Christi .. ... ... ..... ... . ............. .. Corslcana 2 •• • ••••••• • ••••••••••••.••••••• • • • Dalla s ••.... •.•••.• . •••.••• •.... ...... . • • . · . EI Paso ••.••••........ .. .••.•. . •.. • •••..•.•. Fort Wo rth .. ......... .. . ..... ............... Galveston-Texa s City . .. .................. . ... Houston • • .. ••. ...••.•.•••••..• •••.. . , .• •.•. lare do .. . . ... ... ... .. .. ... . ..... . .. .. ...... Lubbock ................................. ·· . McAII. n·Phorr·Edin burg .. ......... .. ......... . . Midland ..•..• ••• . •• ..•••.•••..•..•.••.. ·· • . Od essa ........ . . ........................... ~~~ ~~f!,~i~:: :::::: :::: ::::: :::: :::::: :: ::: : -- Annual ra te of turnover Jun. 1967 from June 1967 May 1967 1966 -3 2 -2 -4 - 6 -4 3 1 0 -2 -10 5 1 -2 6 9 1 -5 -4 -3 5 5 -2 1 2 13 -5 June 1967 from 1966 June 30, Jun e 1967 1967 May 1967 1966 14 6 12 -4 -7 6 9 4 12 4 5 11 7 9 18 12 26 0 15 -2 -7 2 4 25 1 15 - 6 10 5 13 -2 0 0 11 6 1 5 8 11 9 7 10 10 14 -3 13 - 1 -5 1 2 21 1 5 - 8 161 ,835 7 1,857 216,819 37,795 94,919 136,744 211,475 218,335 62,591 201.058 29,449 1,753,474 189,729 5 11 .358 93,704 2,059,7 17 31,949 14 5,237 79.830 120.399 63,093 56,163 526,718 56.958 83,425 109,209 104,776 25.5 27. 1 27.0 16.9 18.2 31.3 22.3 25.6 22.0 20.0 12.7 40.4 27.2 29.2 24.0 34.4 20.6 25.0 17.1 13.1 19.8 16.2 22.5 22.2 19.2 21.0 17.2 26.0 26.2 26.5 18.7 19.3 32.2 23.3 25.4 22.6 21.8 14.2 38.9 26.3 30.3 23.3 32.2 21.1 26.9 18.6 13.5 18.6 15.7 23.2 22.3 19.3 18.8 17.8 22.5 26.8 25.6 18.8 20.2 29.0 22.3 25.9 21.4 21.3 12.2 38.8 25.6 27.3 21. 1 32.2 17.8 24.2 15.5 14.0 21.1 16.2 22.2 19.6 19.0 19.1 18. 1 10 9 $7,428,6 16 30.5 29.8 29.1 Jun e ~ Deposits of indi vid ual s, partnerships, and corpora tion s and of statos and politi cal subdi vis ion s. County basis . . NOTE. _ Figures (or 1966 have bee n revised du e to the use of new sea sonal ad lustm ent foctors. GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS El eventh Federal Reserve District (Ave rag es of daily figures. In millions of dolla rs ) GROSS DEMAND DEPOSITS BUILDING PERMITS ~ VALUATION (Do/lor amounts in thousand s) Percen t change Jun. 1967 from NUMBER ~e a ARIZONA Tocson LOUISIA~~"'" • MQnro e~ West S Monroe hrevoport' " . TEXAS Abilen. Arnarill~ "'" . Aostin .. :·· · · . Beaomont' . " , ~rownsvlII ~' " . D~lros Chrilti'. : EI pa s........ Fart Garth .... HalvQston Oosto ... " Lar • n •• • .. • do Lubbock' '" .. Midl •••. . . an Od e"ad ... " . Port A .... ... Sa rtho r, .. , So n Ang elo •.• l' n Antonio W~~~kana. : : : °¥; ....... WiChit~' F~il; : : -------= " Total -24 citi es Jun e 1967 642 84 440 52 148 372 153 68 446 1.986 480 713 11 5 2.229 27 152 83 87 83 62 1,363 48 490 91 10,41 4 6 mos. 1967 3,352 Jun e 1967 $ 2.709 6 mos. 1967 May 1967 Jun e 1966 $ 12,57 1 35 -52 -8 54 451 2,526 12,817 107 284 2, 105 4,843 14,252 127 34 0 7,299 -85 28 12,01 2 68,755 -44 20 7,6 17 8 1,111 164 17.2 12 66 10 1,433 12 31,332 34.291 -12 -69 4,674 39 180,492 3 2,099 16.308 - 13 6,060 -40 3,375 - 17 2.181 - 39 425 6.223 -2 55,698 55 2,166 6,834 - 66 -7 9.356 -68 -70 3 _ 14 -69 99 42 68 -30 -33 64 2 16 46 -72 -45 648 23 -2 1 -2 1 444 - 14 -38 60 - 13 -50 -7 -5 7 22 11 2 61 -45 -43 -59 -30 39 5 -57 6 25 20 28 320 872 2,2 81 873 377 2.269 11.612 2,865 3.815 611 12,528 195 82 1 503 597 482 427 7,316 254 1,745 447 57, 118 267 1.658 7,488 1.338 167 5,33 4 25,134 5,732 4,062 656 38,780 315 2.03 1 1,05 9 558 194 3,560 9,448 447 946 2,8 10 $ 122,062 $616,168 Country TIME DEPOSITS Reser ve Country Dote Total city banks ban ks Total cit y banks banks 1965, Jun •..•• .• 1966, Jun • •. ..•• 1967, Januar y .•• 8,596 8,742 9,352 8,902 8,951 9,140 8,833 8,968 4,163 4.080 4.226 4,020 4.106 4,245 4,089 4,197 4,433 4,662 5,1 26 4,882 4.845 4.895 4,744 4,77 1 5,104 5.704 5,934 6,091 6,183 6,231 6,261 6,282 2,455 2,667 2,645 2,72 1 2,738 2,723 2.716 2,707 2,649 3,037 3.289 3,370 3,445 3,508 3,545 3,575 February .. . 6 months, 1967 from 1966 Reserve March ..... April ..... . Ma y ...... Jun e ...... VALUE OF CONSTRUCTION CONTRACTS (In million s of dolla rs ) Janoa ry-June Area and type June 1967 May 1967 Aprit 1967 1967 1966 FIVE SOUTHW ESTERN STATES' ....... . ... . .... R.sid. ntiol building • ...... Nonreside ntial building , . , , Nonbuildlng construction, , , UNITED STATES .... ........ Resi dential building. , , .. . , Nonresidential building .... Nonbuilding construction . .. 583 198 219 166 5,414 2,000 2,070 1,344 519 208 138 171 5,095 2,002 I, B08 1,2 85 522 17 1 248 103 4,389 1,627 1,830 931 2,822 991 1.050 782 25,301 9,160 9,936 6.205 2.638 1,089 835 7 14 26,674r IO,547r 9,827 6,299 ] Arizona, lou is iana , New Mexico, Oklaho ma, and Texas . r - Revised. NOTE . - Detail s may not add to totals because of rounding. SOURCE, F. W. Dodg. Company . 3 CROP PRODUCTION CROP ACREAGE (In Ihousands of bushels) (In thousands of acres ) TEXAS 1967, 1967, Harvested Average estimated Average For Crop Jul y 1 1966 1961·65 July 1 1966 1961·65 harvest Winter wheat . . •• Corn •...... .... 54,879 17,056 6,644 1,178 23,876 2,912 150 4,329 702 72,652 19,008 17,640 2,750 21,210 3,585 712 4,451 780 63,065 26,305 19,488 4,968 17,524 2,878 921 ' 2,952 ' 1,012 155,475 24,802 11 ,461 17,066 45,346 7,999 150 7,714 4,798 178,516 26,593 24,368 20,984 42,398 8,844 712 7,977 4,871 167,575 37,720 28,523 26,390 33,722 7,808 921 ' 5,841 ' 5,732 estimated Ools ........... Barley • ••• •••• • Rice' ..... ..... Ha y' ........... Flaxseed ..... .. Irish potatoes· .. . Sweet pototoes 4,. In thousands of hundredwe ight. harve st --- Average 1967 1966 1961 ·65 1967 1966 1961 ·65 Cotton ... • ....... . . . . Winter wheat . •••. .. •.. Corn •. .... .•..• ...... 4,050 3,326 533 302 62 25 508 7,527 2,4 16 292 25 30 4,265 3,229 528 630 125 32 50S 6,22 1 2,221 295 89 29 12 6,460 3,119 860 779 234 27 451 5,993 2,127 287 99 '2 1 ' 14 5,228 8,877 754 455 430 68 1,073 9,254 4,928 424 25 46 62 5,476 8,154 752 83 1 611 87 1,070 7,672 4,747 427 89 47 64 8,239 7,583 1,216 1,099 868 93 951 7,433 Oals •• •.• ••• •.•.••••• Barley . ... ... .. ..... . Rye .................. Rice •• .. ... . . . '" . .. . Sorghums • . .....•.. . . . Hay ••.•••.•.•. ••• .•• • Data for 1965 are provided Instead 01 the S·year (1961.65) averago . SOURCE, U.S. Department of Agriculture. Harvested For Ave rage Crop Peanuts . .. ••...•... .. Flaxseed • .. . •... . . . .. Irish potatoes ••..•.. . • . Sweet potatoes . •..••• • Arizona, loui siana, N e w Mexi co, Oklahoma, and Texas. In thou sands of bogs containing 100 pounds each. ;} In thou sand s of ton s. 1 ~ 4 -= FIVE SOUTHWESTERN STATES' TEXAS FIVE SOUTHWESTERN STATES' 1 11 4,~~~ 99 ' 39 ' 69 -- Arizona, loui sia na, N ew M ex ico, Oklahoma, and Texa s. " Data for 1965 are provided instead of the 5.year (1961 .65) SOURCE , U.S. Departm ent of Agricu ltu re . ave rag e. DAILY AVERAGE PRODUCTION OF CRUDE OIL (In Ihousands of barrels) Percent change from Area 1967p May 1967p ELEVENTH DiSTRiCT ••••••• • 3,500.6 3,022.0 566.8 1,391.9 129.9 96.7 836.7 309.9 168.7 5,032.0 8,532 .6 3,460.0 2,982.4 561.6 1,354.3 125.4 95.4 845.8 308.9 168.7 4,996.0 8,456.0 June Tex a s .. • .. ...... .... .•. Gulf Coast •••. •• •• •• •• West Texas . . ... ..... . East Texa s (proper) ••••• Panhandle •• ••.••••••• Rest of State .......... Southeaste rn New Mexico .. North ern Louisiana ... .... . OUTSIDE ELEVENTH DISTRICT UNITED STATES ............ p - Jun e 1966 May 1967 3,431.5 2,978.7 553.5 1,397.3 127.2 95.5 805.2 306.6 146.2 4,951.9 8,383.4 1.2 1.3 .9 2.8 3.6 1.4 -1.1 .3 .0 .7 .9 CASH RECEIPTS FROM FARM MARKETINGS June 1966 2.0 1.5 2.4 - .4 2. 1 1.3 3.9 1.1 15.4 1.6 1.8 (Dollar amounts in thousands) ==========================================~~~~ January-May Percent 1967 Area Texas ..•.•......... . .. ... . . 186,978 142,994 70,933 275,624 817,317 Total .. ................... Unite d States . .. •• • . . . •• . • • $ 1,493,846 $ 14,836,313 Arizona •..• . . •.• ... • .. . .... louisiana . .. .... . . .. . ....•.. New Mexico .. . . . . .. .... . ... · $ Oklahoma ••• ••..•.••• ••••.. cha~ 1966 $ 215,493 136,586 76,024 304,537 997,977 _13 5 _7 _10 _18 $ 1,730,6 17 $15,270,398 _14 _3 -------------------------------------------~ SOURCE , U.S . Department of Agriculture. Preliminary. SOURCES , Ame ri can Petrole um Institute . U.S. Bureau of Mines. Federal Rose rve Bank of Dallas. NONAGRICULTURAL EMPLOYMENT INDUSTRIAL PRODUCTION Five Southwestern States 1 (Sea sonally adjusted indexes, 1957·59 = 100) Percent change Numb e r of persons 1967p May 1967 1966r 5,697,500 1,039,300 4,658,200 235,100 382,600 5,649,900 1,023,400 4,626,600 231,400 375,600 440,300 1,325,100 281,600 852,900 1, 140,600 432,300 1,3 13,200 277,800 842,000 1,154,200 Jun e Typ e of employment Total nonagricultural wag e and salary workers .. Manufacturing • ..... ..•.. Nonmanufacturing .•..•• .. Mining .. . •.. ....•.•.. Construction •...•.. .. .• Transportation and public utiliti es ••• . ...• Trad e ••.•••.• ••• •• ••• Financ e . •••. ... .• ..... Service .......•.. . .... Government •.........• June 1967 from May 1967 1966 5,452,000 1,004,200 4,447,800 239,100 387,500 0.8 1.6 .7 1.6 1.9 4.5 3.5 4.7 -1.7 -1.3 419,300 1,265,200 268,400 803,600 1,064,700 1.9 .9 1.4 1.3 -1.2 5.0 4.7 4.9 0.1 7.1 June Arizona, louis iana, N ew Me xico, O klahoma, and Te xas. p Pre liminary. r Rev is ed. 1 SOURCE , State employment agencios. .. June Area and type of index June TEXAS Total industrial production •• •.. . Manufacturing . ....... . .. .• . ... Durable • ••••••. • •..••• •••••• Nondurable ..... ............. Mining . ••.. .• .. . .. ......• ·· .. Utiliti es •. ..• ..... • ............ UNITED STATES Total industria l production . . .... Manufacturing . .... . .. .. ... ... . Durable •••••• .. ••• .••••••••• Nondurable . . . . . .. ........... Mining ••.. • ..... . .• . .•..... . . Utilities •. ...•••... . ........ .. . p - r - 1967p 153.5 171.2 189.2 159.2 147.7' 164.7 r 180.7' 153.9' 116.0 184.1 156.5 158. 9 165 ..4, 150.7 122. 0 171.7' 205.3 151.3 170.4 188.4 158.4 112.6 209.9 155.2 156.7 161.6 150.5 123 .1 181.5 155.5 157.2 162.3 150.8 120.7 181.0 156.2r 158.0r 162.6r 152.3r 12 2.8r 179.5 118.2 Pre liminary, Rev ised. Board of Gove rnors of the Fede ral Rese rve System. Fodoral Reserve 8ank of Dallas . June April 1967 154.3 17 1.7 190.8 159.0 119.6 205.5 SOURCES , ~ May 1967 1966 ~ -------